The stock Dividend is more or less profit sharing. When a dividend paying company is profitable they pass along those profits to the shareholders in the form of a dividend check.
Cash dividend affects the cash and remaining items does not have any effect on cash like depreciation or accounts payable.
Dividend policies are concerned with the financial policies that have to do with how, when, and how much regarding paying cash dividend. Dividend policy theories explain the reasoning and arguments that relate to paying dividends by firms Dividend theories include the dividend irrelevance theory that indicates there is no effect on the capital structure of a company or its stock price from dividends.
Stock dividend changes the number of shares outstanding but it does not have any affect on amount of capital
19. What effect will the declaration and distribution of a stock dividend have on net income and cash flows? (Points : 2)No effect on net income or cash flowsNo effect on net income, decrease cash flowsDecrease net income, decrease cash flowsIncrease net income, no effect on cash flows
Yes , I guess
Cash dividend affects the cash and remaining items does not have any effect on cash like depreciation or accounts payable.
Dividend policies are concerned with the financial policies that have to do with how, when, and how much regarding paying cash dividend. Dividend policy theories explain the reasoning and arguments that relate to paying dividends by firms Dividend theories include the dividend irrelevance theory that indicates there is no effect on the capital structure of a company or its stock price from dividends.
Stock dividend changes the number of shares outstanding but it does not have any affect on amount of capital
Non payment of dividend is to be differentiated from non declaration of dividend. Some companies, even though in profits, prefer to retain the profit in the business than disbursing dividends. This in facts maximises the shareholders wealth, due to the effect of compounding. Otherwise, if non payment of dividend is due to absence of sufficient profits, then the shareholders wealth diminishes.
To increase the book value per shear of common stock
bad effects
19. What effect will the declaration and distribution of a stock dividend have on net income and cash flows? (Points : 2)No effect on net income or cash flowsNo effect on net income, decrease cash flowsDecrease net income, decrease cash flowsIncrease net income, no effect on cash flows
transfer additional shares of stock in the company to existing shareholders
These is defined as Globalization. It addresses the infrastructure of global corporations, as well as the effect it has on economies worldwide.
A dividend becomes a liability only after it has been declared. The debt to equity ratio changed because your liabilities after the declaration went up.
A 10% dividend not make any difference whatsoever to the number of issued shares. Neither will it effect the book value of its shares.
Brian J. Aitken has written: 'Wages and foreign ownership' -- subject(s): Corporations, Foreign, Effect of foreign investment on, Foreign Corporations, Wages